Daily Chart Art – October 28, 2011

USD/JPY: 1-hour

USD/JPY: 1-hour Chart

There’s no stopping my boy the yen, is there? USD/JPY is now steadily trading below the 76.00 mark, and is currently forming a descending channel. Price is now right smack in the middle of the channel, but I expect traders to be keeping an eye out for potential support around 75.60 and resistance at 76.15.

EUR/USD: 4-hour

EUR/USD 4-hour Chart

So much for resistance at 1.4000! EUR/USD bulls were just too strong yesterday, as they broke the pair out of its recent wedge and set a new high just below 1.4250. Watch out though, as a shooting star has formed. With Stochastic also showing overbought conditions, have the bulls ran out of steam? Be on the lookout for a bearish marubozu candle as a sign that the bears are back.

GBP/JPY: 1-hour

GBP/JPY: 1-hour Chart

Finally! After sticking within a tight 100-pip range the whole week, GBP/JPY finally broke out of its range. The only question now is, could this be fakeout? Or could the pair be headed to new highs? I’ve got a feeling that 122.00 could serve as resistance-turned-support, but I’d rather wait for a few more tests to see whether it is holding or not.

Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.

Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.

  • tim

    I am totally baffled by your views on the eur/usd pair. The daily chart showed a very bullish marubozu candle yet you are asking readers here to look out for a bearish marubozu candle.  The pair maybe over bought at this point but there is no reason to advocate a sell either.  Your calls on the eur/usd pair for the past 2-3 weeks really makes one wonder about  the neutrality of your views. Do you have any special (personal) reason for feeling so bearish about the pair ???

    • Jagstrack

      Tim, you made a great point.
      I think with economic calendar completely filled, the first wee
      of the month is going to be very volatile. No indicators would work at this point.

      With positive ( though fading) news from europe, any below expectation data from US would make eur/usd go around 1.4400+. I have a bullish sentiment on eur/usd. No way would I think of shorting it.

  • A Fistful Of Pips

    USDJPY Shot up of course. Their central bank stepped in. Anyone see that coming?